PORTLAND, ORE., October 29 /CNW/ - Pope & Talbot, Inc (Pink Sheets: PTBT)
today announced that, in order to address its financial challenges and to
support efforts to be a more efficient organization, the company and its U.S.
and Canadian subsidiaries have applied for protection under the Companies'
Creditors Arrangement Act (CCAA) of Canada. Pope & Talbot's Board of
Directors, in a unanimous decision, directed the company to take this action
as the best alternative for the long-term interests of the company, its
employees, customers, creditors, business partners and other stakeholders.
"We want to assure our customers and employee colleagues that Pope &
Talbot is taking all available steps to allow its business to continue
operating as a going concern," said Harold Stanton, President and CEO. "Our
customers can continue to rely on Pope & Talbot to supply their critical
business needs. This protection is a necessary and responsible step for the
company at this time. Our customers and business partners want Pope & Talbot
to succeed, not only because of our over 150-year heritage, but because of the
value our company brings to the marketplace."
Persistent record low demand for lumber, high priced pulp chips and
sawdust, the appreciation of the Canadian dollar and the high cost of debt
service have combined for an untenable business environment. Despite doing
many things to preserve liquidity, Pope & Talbot has determined the best
alternative is to seek protection and flexibility under the reorganization law
in Canada, where its principal operating subsidiary is located, and therefore
sought protection under the CCAA. The company will use the protections of the
CCAA to provide additional time for it to continue its restructuring efforts,
which include, but are not limited to, the sale of certain or all of the
Pope & Talbot expects to fund current operating needs, including wages,
benefits and other operating expenses, with cash generated from daily
operations while under CCAA protection.
Pope & Talbot is a pulp and wood products business. The Company is based
in Portland, Oregon and trades on the Pink Sheets under the symbol PTBT. Pope
& Talbot was founded in 1849 and produces market pulp and softwood lumber at
mills in the US and Canada. Markets for the Company's products include the US,
Europe, Canada, South America and the Pacific Rim. For more information,
please check our website at www.poptal.com.
For further information:
For further information: Hubbell Communications Mark Rossolo,